The regulator questioned whether Advamode Financial undertook adequate research into its financial products and whether it had suitable arrangements for the management of conflicts of interest.
Under the new licence conditions – which Advamode has consented to – an ASIC-approved compliance expert will review the firm’s business, including all policies and processes relevant to each of ASIC’s concerns.
Advamode will be required to implement any remedial actions recommended by the compliance expert.
“Licensees must have systems in place to manage conflicts of interest, and have the resources to provide efficient, honest and fair financial services. This goes to the heart of maintaining consumer and investor trust and confidence in the financial services industry,” said ASIC deputy chair Peter Kell.
“The imposing of licence conditions on Advamode shows ASIC won’t hesitate to act to ensure standards are maintained across the industry.”
ASIC added that the assessment of Advamode’s conduct, which led to this action, is unrelated to Advamode’s relationship with BBY.
Good to see that ASIC is ensuring that advisers work in the best interests of their client at all times to ensure honest and fair services.
Kind regards,
Adrian Totolos.
Business Analyst.